22k debt, should I go with iva? help pls

Mistymat123

Hi hope you are all well. 
Im 27 and I  have around 22k worth of debt from owning my own business the past 8 years (bounce back loan, credit cards etc) I tried everything to keep the business going and it just wasn't happening.

So ive since stopped trading and got a part time evening job in Santander. Obviously im struggling to pay past bills with the work I have atm and ive spoken to Payplan who have advised I get an IVA, however my main concerns with getting it are that im going to loose my job if they find out about it (working in the bank)
I still live with parents and don't want to be stuck here for the next 6 years or not even be able to get a new phone. I have a car which is on finance lease and insurance which I pay monthly which cost me a lot but I feel stuck in it because I cant change my car due to bad credit from missed payments. Any advice would be greatly appreciated. I also don't mind if people suggest I go with Stepchange instead as ive heard that they are more common. thanks 

sammyjammy

An IVA is for people with large amounts of debt that have assets such as property to protect.  If you are willing to consider he loss of the car bankruptcy is probably a better option than an IVA.  

Grumpelstiltskin

In your circumstances do not touch an IVA with a barge pole.

Really what you need isa full time job then if you are living with your parents you should be able to do a self managed DMP and with a following wind and hard work you should be able to clear your debts within 2 or 3 years.

Mistymat123

Yeh I was wanting to own towards a DMP more but Payplan was pushing an Iva.. I’m currently in the process of looking for a second job and extra income etc. 
with bankruptcy will I still face the same issues of possibly loosing my job and not being able to rent etc? And what would happen to my car

thanks for you advice 

Grumpelstiltskin

Look forget any form of insolvency ie Bankruptcy or IVA.

Your debt is not big enough for either.

A self managed DMP is relatively easy to do and does not have the same consequences as , for instance with Bankruptcy it follows you for the rest of your life, in 20 years time if you apply for a financial product you could be asked if you had ever been bankrupt and you would have to answer yes as  your name stays on the London Gazette for ever.

ManyWays

Mistymat123 said:

Yeh I was wanting to own towards a DMP more but Payplan was pushing an Iva.. I’m currently in the process of looking for a second job and extra income etc. 
with bankruptcy will I still face the same issues of possibly loosing my job and not being able to rent etc? And what would happen to my car

thanks for you advice 

You have a temporary problem until you get more work.  It would not be sensible to look at any form of insolvency until you have more income and can properly assess what you debt options are. 

Brie

Mistymat123 said:

Yeh I was wanting to own towards a DMP more but Payplan was pushing an Iva.. I’m currently in the process of looking for a second job and extra income etc. 
with bankruptcy will I still face the same issues of possibly loosing my job and not being able to rent etc? And what would happen to my car

thanks for you advice 

Did you ask Payplan how much of the money they wanted you to pay to them every month actually goes to your debts?  Basically - what's in it for them? 

Lots of people do DIY DMPs so that all the money goes to the creditors without someone else taking a slice for their business profits.  Check out the charities that do debt advice - Community Money Advisers (CMA) will certainly help you set up a DMP.  Check what NationalDebtline, StepChange and Christians Against Poverty (CAP) do as well.  

Mistymat123

Brie said:

Mistymat123 said:

Yeh I was wanting to own towards a DMP more but Payplan was pushing an Iva.. I’m currently in the process of looking for a second job and extra income etc. 
with bankruptcy will I still face the same issues of possibly loosing my job and not being able to rent etc? And what would happen to my car

thanks for you advice 

Did you ask Payplan how much of the money they wanted you to pay to them every month actually goes to your debts?  Basically - what's in it for them? 

Lots of people do DIY DMPs so that all the money goes to the creditors without someone else taking a slice for their business profits.  Check out the charities that do debt advice - Community Money Advisers (CMA) will certainly help you set up a DMP.  Check what NationalDebtline, StepChange and Christians Against Poverty (CAP) do as well.  

yeh they have said it will cost 2.5k for the IVA, added a pic of the graph below ....





 

ManyWays

Mistymat123 said:

yeh they have said it will cost 2.5k for the IVA, added a pic of the graph below ....





 

Lovely graphic but a work of fiction. because your IVA payments arent going to stay the same unless you stay living with your parents and your income doesn't change for 5 years so that' not going to happen.
Also if you want to move out getting a private tenancy will be very hard with insolvency on your credit record. 
Get a full time job and sort out your housing and only then consider insolvency. 

sourcrates

Seems Payplan are actively pushing IVA`s to all and sundry just now, this is the second post today where the OP was offered an IVA which would be wholly inappropriate for their circumstances.